ACC members welcomed the enactment of the Advanced Manufacturing Production Tax Credit under Section 45X - the credit was viewed as transformative in the onshoring of manufacturing and was the topic of discussions at many companies as decisions were being made on the location of future investments in manufacturing. The credit’s value and the ability to monetize such value tilt the scales in such discussions to investment in the United States, even with strong countercurrents that would favor other countries.
ACC and its members are surprised and disappointed in the Section 45X notice of proposed rulemaking (NPRM) insofar as it announced a significant curtailment in the value of the Section 45X tax credit for those taxpayers producing electrode active materials (EAMs) and critical minerals. The statute states that the value of such credit shall be “10 percent of the costs incurred by the taxpayer with respect to production.”